"The pounds in local government workers' pockets are turning to pennies," Prentis said.

"The cost of everyday essentials like milk, bread, petrol, gas and electricity are going through the roof - our members cannot afford to take another cut in their pay.

"Strike action is always a last resort, but we have been left with no choice."

Prentis said local government employers were "sitting on £3bn worth of efficiency savings made by our members they could use to settle the strike now".

He added that there was "no need to ask the government for more, no need to put up council taxes and no need to cut jobs or services".

The Unite union's national officer, Peter Allenson, said the blame for the dispute could be placed "squarely on the shoulders of the local government employers".

Brendan Barber, the TUC general secretary, said the "growing gap between wages and inflation" was the reason why "thousands of council workers will reluctantly be going on strike".

"All they want is a decent living wage, something the 2.45% is simply not going to give them," he added.

A spokesman for the prime minister said: "The government doesn't set local authority workers' pay. This is an issue between local authorities and local authority workers."

Local government employers reiterated that 2.45% was the final offer, claiming a bigger rise would have to be funded through higher council taxes or cuts in services.

Jan Parkinson, the managing director of the local government employers, said: "It is disappointing that the unions are taking staff out on strike when only 7% of them voted for industrial action.

"Council workers will lose two days' pay, and many of them can ill afford this.

"The settlement on the table is affordable to the council tax payer and will also make sure local government continues to be an attractive place to work."

The shadow local government secretary, Eric Pickles, claimed council tax bills would soar if "weak Labour ministers surrender to militant union demands".

· This article was amended on Monday July 21 2008. In the article above we said that strike action by local government workers had brought widespread disruption to schools around Britain. The strikes took place in England, Wales and Northern Ireland, but not Scotland. This has been corrected.